More than a few attorneys forget to take advantage of Disciplinary Coverage until it is too late. Attorney Malpractice Insurance policies that offer this coverage can be ‘Duty to Defend’ or ‘Reimbursement’. Hanover’s Insurance disciplinary Hanover Insurance Attorney Malpractice Policy – Disciplinary Coverage
coverage is ‘Duty to Defend’. Policy wording for disciplinary coverage and reporting differs by carrier. The disciplinary reimbursement is not subject to the policy deductible.
Declarations Page:
Item 6. SUPPLEMENTAL COVERAGE LIMIT AND DEDUCTIBLE
Disciplinary Proceedings
$25,000 per Insured /$25,000 for all Insureds
$0 Deductible
Policy Coverage:
3. Supplemental Coverage
b. Disciplinary Proceedings
We will pay on Your behalf only Defense Expenses incurred in responding to a Disciplinary Proceeding commenced against You and reported to Us in writing during the Policy Period or an Extended Reporting Period. We shall not pay any Damages incurred as a result of a Disciplinary Proceeding.
Policy Definition:
Defense Expenses means all expenses We incur or authorize in writing for a Supplemental Coverage Matter. These expenses include fees charged by a lawyer, mediator or arbitrator with Our consent for which You are obligated. Defense Expenses do not include Damages, other relief or Claim Expenses.
Disciplinary Proceeding means an administrative or regulatory proceeding by a regulatory or disciplinary official or agency to investigate or prosecute charges alleging professional misconduct or ethical violations in the performance of Professional Services.
Not taking advantage of this policy coverage does not make sense. Firms have a fear that reporting disciplinary complaints can impact their attorney malpractice insurance premiums. While too many disciplinary reported complaints that do not result in an issue can cause problems. Not reporting issues that may lead to a proceeding may impact your malpractice insurance should the same issue turn into a malpractice claim at a later date. The other issue is that once a year you may need to attest on the renewal application about disciplinary issues.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080